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2010 Supreme(P&H) 3422

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH
VIKAS BAHL, J.
Bhushan Lal – Petitioner
Versus
Amit Kumar and others – Respondents
CM No.20376-CII of 2023 in/and Civil Revision No.1755 of 2010
Decided On : 06-04-2026 

Advocates Appeared:
For the Petitioner:Mr. Vishal Aggarwal, Advocate
For the Respondents:Mr. Sanjiv Gupta, Senior Advocate with Mr. Aayush Bansal, Advocate, Mr. Akshay Jindal, Senior Advocate with Mr. Bhavya Vats and Mr. Vrishank Suri, Advocates.

Exclusive possession of a tenanted property by a third party, in the absence of a valid tenancy agreement, establishes subletting. Eviction for material impairment requires proof of structural changes that demonstrably diminish the building's value or utility, and cannot be based on misread evidence or imputed admissions.

Headnote:(A) Haryana Urban (Control of Rent and Eviction) Act, 1973 - Section 13 - Eviction - Subletting - Burden of proof - Once a person is in exclusive possession of the premises and the claim of being a tenant is rejected, the burden shifts to the occupant to explain the nature of possession - A secret arrangement between a tenant and a sub-tenant is difficult for a landlord to prove, thus, exclusive possession by a third party without consent constitutes subletting. (Paras 10, 13, 19)

(B) Material impairment - Structural changes - For eviction on this ground, it must be proved that acts committed by the tenant materially impair the value or utility of the building - Mere replacement of doors with shutters, in the absence of evidence of structural damage or diminished utility, does not constitute material impairment - Findings based on misreading of evidence or imputed admissions are perverse and liable to be set aside. (Paras 21, 23, 25)

(C) Revisional jurisdiction - Scope and ambit - High Court in revision is not a second appellate court - Interference is limited to cases of perversity, illegality, or misreading of evidence - An order is not to be interfered with simply because another view is possible. (Para 19)

Facts of the case:
The landlord sought eviction of the tenant on grounds of subletting and material impairment. The lower courts ordered eviction on both grounds. The petitioner challenged this, claiming the tenancy was held by a business entity and denying any material impairment.

Findings of Court:
The court upheld the eviction on the ground of subletting, finding the petitioner failed to prove the business entity was the tenant and that the original tenant had indeed sublet the premises. However, the court set aside the finding on material impairment, noting the evidence did not support the claim that the tenant had demolished a wall or that the installation of shutters impaired the building's value.

Issues: Whether the premises were sublet without consent and whether structural changes constituted material impairment.

Ratio Decidendi: Exclusive possession by a third party, coupled with the failure to establish a valid tenancy, proves subletting. Conversely, material impairment requires concrete evidence of diminished value or utility, which cannot be based on misread or non-existent admissions.

Result: Petition dismissed; eviction order upheld on the ground of subletting.

Table of Content
1. procedural history and factual genesis of the eviction petition. (Para 1 , 2)
2. opposing contentions regarding tenancy of the firm versus individuals and validity of physical alterations. (Para 3 , 4 , 5 , 6 , 7)
3. tenant's exclusive possession and failure to prove firm's tenancy confirms unauthorized subletting. (Para 8 , 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19)
4. lack of evidence regarding structural changes precludes eviction for material impairment. (Para 20 , 21 , 22 , 23 , 24 , 25)
5. revision dismissed; eviction upheld on subletting, miscellaneous applications disposed. (Para 26 , 27 , 28 , 29 , 30 , 31)

JUDGMENT :

VIKAS BAHL, J.

INDEX
Paragraph(s)
1. Challenge in the present petition 1
2. Brief background of the case2
3.Arguments on behalf of the petitioner3-5
4.Arguments on behalf of the respondents6-7
5.Analysis and findings8-31

CHALLENGE IN THE REVISION PETITION:

1. Challenge in the present revision petition is to the judgment passed by the Rent Controller dated 15.01.2009 vide which the petition filed by respondents No.1 and 2 under Section 13 of the Haryana Urban (Control of Rent and Eviction) Act, 1973 (hereinafter referred to 'the Act of 1973') for the ejectment of the petitioner and Madan Lal (since deceased represented by LR's) was allowed. Challenge is also to the judgment dated 11.02.2010 vide which the appeal filed by the petitioner, who was impleaded as respondent No.2 in the eviction petition and as per the case of present respondents No.1 and 2 was a sub-tenant, was dismissed qua the challenge to the eviction order. The 1st Appellate Court had passed the eviction order on the ground of sub-letting and also on the ground of material impairment.

BRIEF BACKGROUND OF THE CASE:

2. Respondents No.1 and 2 had filed an eviction petition under Section 13 of the Haryana Urban (Control of Rent and Eviction) Act, 1973 for the ejectment of Madan Lal and Bhushan Lal from Shop No.5266 situated in Pansari Bazar, Ambala Cantt, on several grounds. The Rent Controller vide judgment dated 15.01.2009 allowed the said rent petition and directed the said Madan Lal and Bhushan Lal to hand over the vacant possession of the property to the landlords within a period of three months from the date of the passing of the judgment. The appeal filed by the present petitioner-Bhushan Lal was decided on 11.02.2010 and in the said judgment, the petitioner was held entitled to recovery of excess rent amount deposited by him. However, the eviction on the ground of subletting and material impairment was upheld and the petitioner was directed to hand over the vacant possession of the demised premises within a period of one month from the date of the passing of the said judgment. The petitioner-Bhushan Lal challenged the said judgments of the Rent Controller and of the Appellate Authority by filing the present Civil Revision No.1755 of 2010. The said Civil Revision No.1755 of 2010 was disposed of vide order dated 18.09.2012 along with the order of even date passed in Civil Revision No.3389 of 2011. An application for recalling of the said order was filed on behalf of respondent No.2 which was dismissed vide order dated 04.12.2014. Against the said orders, respondents No.1 and 2 filed Civil Appeal Nos.3840-43 of 2017 and the Hon’ble Supreme Court was pleased to dispose of the said appeals vide judgment dated 08.03.2017. Thereafter respondents No.1 and 2 filed an application for recall of the part of the judgment dated 08.03.2017 which pertained to the premises in question. The Hon’ble Supreme Court vide order dated 28.03.2018, recalled the judgment dated 08.03.2017 and remanded the matter to the High Court for de novo consideration of the case of the parties pertaining to the premises in question. It is in pursuance of the said order that the matter has come up before this Court.

ARGUMENTS ON BEHALF OF THE PETITIONER:

3. Learned counsel for the tenant-petitioner has submitted that in the present case, although several grounds for

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